Thinking about getting air conditioning installed and wondering whether the Boiler Upgrade Scheme (BUS) will help cover the cost?
With modern AC doubling up as air-to-air heat pumps, it’s easy to assume the BUS might help fund the installation. And judging by the number of questions we get, you’re far from alone.
But despite offering both heating and cooling, not all heat pumps qualify for the Government’s £7,500 grant.
Here’s the key distinction you need to know…
🚫 The Boiler Upgrade Scheme does not cover air conditioning units
Modern AC systems are often full air-to-air heat pumps, meaning they can heat your home as well as cool it.
So it’s completely understandable that homeowners assume they’d be covered by the BUS.
But despite the technology inside, they don’t qualify - and it comes down to one key detail…
🎥 Prefer video? Check out our YouTube video explaining the situation with air con grants below:
What the BUS Is Actually Designed to Fund
Before we get into why air conditioning isn’t covered, it helps to understand what the Boiler Upgrade Scheme is trying to do.
The BUS isn’t a general “heat pump grant” or a “cooling upgrade allowance.”
It’s a boiler replacement scheme - designed to help homeowners ditch gas and oil and switch to proper low-carbon heating.
To qualify, a system has to tick three very specific boxes:
[1] It must heat your home’s water, not just blow warm air around
Think radiators, underfloor heating, and hot water cylinders.
If it doesn’t heat water, it can’t replace a boiler - simple as that.
[2] It must be capable of heating your whole home
Not just the lounge. Not just the bedroom.
A full central heating system that works year-round.
[3] It must genuinely cut carbon emissions
Heat pumps do this beautifully, which is why they’re the star of the scheme.
So What Is Covered by the BUS?
Here’s the official shortlist:
✔ Air-to-water heat pumps (the ones Heatable installs nationwide)
✔ Ground-source heat pumps
✔ Biomass boilers (only in specific rural situations)
These systems all do the same thing a boiler does - but cleaner, greener, and more efficiently.
And this is exactly why air conditioning doesn’t make the cut.
Why AC Units Aren’t Eligible - Even If They’re Heat Pumps
This is where people understandably get confused.
Modern AC units look sleek, run efficiently, and many are technically air-to-air heat pumps - so surely they should qualify for the grant… right?
Not quite.
Air-to-Air Heat Pumps = Air Conditioning + Optional Heating
They heat (or cool) by blowing conditioned air into a room.
They do NOT:
Heat radiators
Heat underfloor heating
Heat your hot water
So the Government looks at them and says:
“Lovely units… but they’re comfort cooling, not central heating.”
➡ And that’s why they’re not BUS-eligible - no matter how efficient they are.
Common systems that won’t get the grant:
Wall-mounted AC units with heating mode
Multi-split systems
Ducted AC setups
Mini-splits used for zoned cooling/heating
Brilliant for comfort. Not boiler replacements.
Air-to-Water Heat Pumps Are Covered by the BUS
Now for the good news.
Air-to-water heat pumps do replace your boiler.
They take heat from the air and pump it into… you guessed it… water, which runs through your radiators, UFH, and hot water cylinder.
This is why they get the Government thumbs-up - and the £7,500 grant.
Some of the most popular models include:
Mitsubishi Ecodan
Daikin Altherma 3
Vaillant aroTHERM plus
Samsung EHS
LG Therma V
Some of these can even offer cooling too - but they qualify because of their heating capabilities, not the optional chill-out mode.
➡ Heatable installs air-to-water heat pumps nationwide with fixed prices and MCS-certified designs.
The Simple Rule
When in doubt, remember this:
If it blows warm air → it’s AC → ❌ No BUS grant
If it heats water → it’s a heat pump → ✅ £7,500 BUS grant
No matter how advanced or swishy your AC unit is, if it doesn’t heat water, BUS funding is off the table.
So… What Should You Install?
If staying cool is your main goal:
A reversible air-to-air heat pump (AC unit) is spot on.
Just don’t expect BUS to chip in.
If you want lower bills, greener heating, and that £7,500 grant:
Go for an air-to-water heat pump - the type Heatable installs across the UK.
You can still add AC upstairs or in specific rooms if you want extra cooling.
A heat pump for heating + AC for comfort = the ultimate setup.
Final Word
The Boiler Upgrade Scheme is incredibly generous - but it has a very specific purpose: to accelerate the switch from boilers to low-carbon central heating.
Air conditioning systems simply don’t fall under that umbrella.
If you’re unsure which system suits your home, or you want a fixed-price quote for a heat pump installation, Heatable can help. Answer a few quick questions and we’ll design your perfect setup.
Next Steps For Your AC Journey:
When planning to install air conditioning for your home, there are several important factors to consider. Make sure to refer to the following guides to help you make informed decisions:
To dive deeper into these topics, head over to our advice section, check out our YouTube channel for informative videos.
Get a Quote for Air Conditioning Today ❄️
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